OneLogix hampered by Covid-19


OneLogix hampered by Covid-19

Published Date: 2021-02-19 | Source: Stephen Gunnion | Author: Stephen Gunnion

OneLogix hampered by Covid-19

The niche logistics company has not declared an interim dividend so it can preserve cash and take advantage of new opportunities.

OneLogix has reported a drop in first-half earnings after Covid-19 put the brakes on an already listless economy. However, it said all 12 of its companies have weathered the impact of the pandemic and remain in good health.

The niche logistics group said despite last year's challenges, some of its units reported improved profit, while others remained inherently relevant, with solid underlying business strategies and strong customer bases that would ensure their sustainability.

Also hampering its performance, its OneLogix UB (United Bulk) business was subjected to an unprotected strike that significantly impacted operations late in the period. However, the business continued with its productivity-based reinvigoration process, with the results expected to become evident in the coming months.

Revenue fell 16% to R1.22 billion for the six months to end-November and earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 9% to R187 million. It incurred once-off retrenchment costs of R8.8 million during the period, predominantly in the OneLogix VDS business, which falls within the Abnormal Logistics segment. Earnings per share (EPS) came in 39% lower at 10c while headline EPS dropped 41% to 10.1c. It hasn't declared an interim dividend so it can preserve cash due to uncertain market conditions and so it can expand and grow the business if opportunities come up.

Following the end of the reporting period, shareholders authorised the sale of the group's Umlaas phase 3 development for R310 million as well as the subsequent leaseback of the property from the purchasers. In December, it bought specialist agricultural equipment logistics company Agritrans for R18.6 million and two deferred contingent payments of R1.125 million each, payable in December 2021 and December 2022.

The company's shares fell 9.1% to R2 in light trade yesterday.

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